The Good Life A Look At What Glitters On The Gold Coast

May 27, 1985|By Tom Stieghorst, Business Writer

The rich and well-to-do -- those making $75,000 or more each year -- account for less than 5 percent of the population in Broward and Palm Beach counties. But catering to their expensive pleasures can be an attractive business to be in.

Establishments allied with the afflu- ent are among the least likely to be hurt by a recession.

And when the economy is in high gear, throwing off solid returns on business, real estate and securities investments, the beneficiaries will be the firms that sell luxuries, as well as the people with the money to buy them.

The area including Broward and Palm Beach counties is one of less than a dozen in the country where all of the accouterments and lavish extras of the good life are readily available. It is home to the largest Hatteras yacht L dealer in the world, two of the nation`s 21 five-star hotels (The Breakers and the Boca Raton Hotel), and the country`s finest polo club (Palm Beach Polo and Country Club).

Evidence of the region`s wealth is found in any stroll along the Mercedes- lined curbs of Las Olas Boulevard in Fort Lauderdale or Worth Avenue in Palm Beach.

And now, 2 1/2 years into the latest economic recovery, most upscale busi- nesses are doing better than at any time in the past four years.

``Business today is excellent,`` said Mi- chael Moran, owner of Sound Plus Wood, a Boca Raton firm that sells state-of- the-art sound equipment and custom cabinets and furniture to go with it. Mor- an said his 10-year-old business, at 20 N. Federal Highway, has been growing by 30 to 40 percent for the past several years, offering items such as a car ster- eo package that costs more than some cars.

The system is built around a L Nakamichi AM/FM-tape deck, guided by twin microprocessors that talk to each other electronically. The price tag: $5,600.

``It sounds outrageous, but it`s so so- phisticated in terms of design that you have to be very careful about putting it in a car,`` Moran said.

About $1,200 goes for the 20 hours of labor needed to perform the delicate operation. The rest pays for equipment. Sound Plus Wood has sold four such sys- tems so far this year, and installed half a dozen last year.

The big boats sold by Hatteras of Fort Lauderdale Inc. have been another hot post-recession item. A 61-foot Hatteras motor yacht comes with a bill of $1.2 million. ``We`re selling those as fast as we can get our hands on them,`` said Doug White, general manager of the firm, at 1445 S.E. 16th Street.

The Fort Lauderdale dealership is the largest of 20 Hatteras outlets world- wide. Business overall has ``just taken off`` since last fall, White said. Sales in the year ending last August rose 1 1/2 times over the year before, and White expects the current year to surpass that.

Rolls Royce sales are running 50 per- cent ahead of last year, according to Randy Walters, president of Royal Mo- torcars, 1624 E. Sunrise Blvd., which handles Rolls Royce, Lam-bor-ghini and Excalibur automobiles in Broward L County. ``We`ve sold 30 new ones so far this year, and probably that many used,`` said Walters.

The Rolls line starts at $98,000 and runs up through the $109,000 Silver Spur and the $156,000 convertible model to the top of the line $195,000 Rolls Royce limousine.

Most buyers pay cash, Walters said.

Broward and Palm Beach counties are a natural habitat for these and other upscale businesses for several reasons. The counties rank Nos. 1 and 2, in per capita investment income among areas in the Southeast.

On the average, Palm Beach residents earned $5,451 and Broward residents $4,524 from investments in 1984.

That indicates a group with a high net worth, one key to the luxury market, according to market researchers.

Broward also ranks 15th among the 315 largest metropolitan areas in per capita effective buying income, a mea- sure of spending power. Each person in the Fort Lauderdale-South Palm Beach area has an average of $12,048 of annual income to spend, putting them ahead of areas such as Houston, Denver and Min- neapolis-St. Paul, according to Sales & Marketing Management, a New York City research firm.

Fort Lauderdale-South Palm Beach also ranks sixth among all markets in per capita retail sales, with $6,556 of goods sold annually to each resident, according to the firm.

Within the two counties, the most af- fluent consumers tend to be bunched together in exclusive communities along the Atlantic coast. Many live in The Sanctuary in Boca Raton, Bay Colony in Fort Lauderdale, Turnberry in north Dade County and Boca West in Boca Raton, according to upscale retailers and dealers.

Broward`s affluent tend to be younger than those in Palm Beach county. ``Down here it`s more new money, guys who are just making it,`` said Walters, who has Rolls customers in both counties.

Very few Rolls buyers are retired. They are typically real estate dealers and developers in their 40s, said Walters. Salesmen, on the other hand, tend to favor the Excalibur, a low-slung ba- roque roadster with a more affordable $61,000 price tag.